While everyone waits on the RBA, ANZ cuts its home loan rates
Despite the Reserve Bank putting off much anticipated rate moves, ANZ today made interest rate cuts to its main variable rate home loan.
ANZ’s Simplicity Plus owner-occupier (P&I) loan has dropped by up to 0.15% p.a. across most of its loan-to-value ratio (LVR) tiers, a welcome sight for many cost-weary borrowers.
For example, on its 60% LVR loan the interest rate dropped from 6.54% p.a. to 6.39% p.a., which makes it one of the better options in the Mozo database among Big Four bank offerings.
The ANZ Simplicity Plus loan now breaks down as follows:
| LVR tier | Previous rate | New rate | Comparison rate |
| Borrowing ≤ 60% of the property value | 6.54% p.a. | 6.39% p.a. | 6.39% p.a.* |
| Borrowing ≤ 70% of the property value | 6.59% p.a. | 6.44% p.a. | 6.44% p.a.* |
| Borrowing ≤ 80% of the property value | 6.64% p.a. | 6.54% p.a. | 6.54% p.a.* |
| Borrowing ≤ 90% of the property value | 7.24% p.a. | 7.09% p.a. | 7.09% p.a.* |
| Borrowing > 90% of the property value | 7.64% p.a. | Unchanged | Unchanged* |
| *ANZ’s comparison rate is calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments, including any applicable interest rate discounts. | |||
How do these home loan rates stack up?
In the overall field of variable rate home loans for owner-occupiers, it should be noted these new interest rates are still nowhere near the cheapest available – they are more middle of the road in the Mozo database.
The current average variable rate for owner-occupier (P&I) in the Mozo database is 6.75% p.a.^, which is based on an 80% LVR. With this in mind, ANZ’s rate for the 80% LVR tier (at 6.54% p.a.) is somewhat better than the average.
Are RBA rate cuts coming soon?
It’s also worth considering the potential for rate cuts to the official cash rate by the RBA, which ANZ now expects to occur in February 2025. This might see products such as Simplicity Plus receiving further rate drops.
Still, other forecasters aren’t so bullish, with NAB’s economic experts saying they don’t expect the RBA to move until May.
Either way, a borrower's assessment of any home loan should be made on factors beyond the interest rate, such as fees and features that also contribute to the cost and flexibility of a home loan.
The Simplicity Plus is touted by ANZ as ‘a simple home loan with basic features’ and with a competitive variable interest rate.
If you’re looking to assess the home loan market more broadly, be sure to visit our compare home loans page.
^Based on variable rates in the Mozo database. $400,000 Owner Occupier Home Loan, Principal & Interest, LVR 80%, as at 22 November 2024.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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